TOP 10 OPERATORS 1: DUFRY GROUP


of South America in Q4 2019 were not given much time to develop in 2020, as Covid-19 forced the closure of borders and airports across the region towards the end of the first quarter. However, the Central & South


America division was actually the least impacted during the first quarter of 2020, according to Dufry, as most restrictions in the region ‘only started in the second quarter’. Turnover reached CHF329.6m in


the first half of 2020 compared to CHF761.8m one year earlier, with organic growth coming in at -55.6%. For the Europe & Africa division,


Dufry has successfully renegotiated contract terms with many of its landlords. Julián Díaz (left) pictured with colleague Fred Creighton and London Heathrow CEO John Holland-Kaye (centre).


the duty paid business confirmed its resilience, despite some temporary challenges. The duty free segment was negatively impacted by the lower spending from Chinese passengers for the first nine months, but showed signs of a recovery in the fourth quarter 2019.


ct


SA recovery shortlived In Central and South America, turnover stood at CHF1,536.1m in 2019 versus CHF1,617.0m in 2018.


FX Turnover by currency FY


Other* 20%


USD 40%


GBP 17%


Organic growth in the region was -6.3% in the year with the performance in the fourth quarter turning positive at 0.2%. During 2019, South America


remained challenging, impacted by local currency devaluations, namely in Brazil and Argentina. Performance in Mexico was positive throughout the year, reaching solid results especially during the fourth quarter. Of course, the encouraging green shoots of recovery for some parts


-4.0% -2.0% 0.0% 2.0% 4.0%


EUR 23%


* Other includes CHF, CAD, AUD, HKD, etc. Main currencies development 5.0% Q1


encies SD o and und


Q2 Q3 Q4 -10.0% -2.8% -1.7% 1.7%


-4.0% -3.8%


0.1% -4.2% -5.4% -0.2% -3.3% -1.8% -5.0% 0.0% 5.0% 10.0% Q4 -36.6% 3.6% -60.0% -40.0% -20.0% s Presentation Graph indicating FX effects on Dufry’s 2019 results. Source: Dufry Group. 10 TOP 10 OPERATORS 0.0% 20.0%


USD/CHF EUR/CHF GBP/CHF


Q2 Q3 -46.4% -3.9% -0.3% -36.0% 1.4% -6.7% Q1 -49.3% Devaluation of local currencies


-13.7% -13.6%


-7.9%


USD/BRL USD/ARS USD/RUB


FX translational impact on turnover 3.5%


1.3% -0.5% -1.0% -1.4% -2.5% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 -1.5% 1.4%


organic growth slid -66.1% year- on-year, resulting in turnover of CHF558.9m in the first six months of 2020. In Asia Pacific (APAC) & Middle


East, turnover amounted to CHF236.0m in the first half of 2020, versus CHF623.8m in the same period in 2019. In North America, turnover


reached CHF392.2m compared to CHF954.5m in the first half of 2019. While forecasts are almost impossible to make at this time and much is uncertain about the future, Díaz did say that there have been some critical developments. “During this time, I have seen


partnership become more than just a word, but now an action… I think we are all looking at how the business – not just the travel retail business, but the travel industry as a whole – can survive and become more sustainable. I think our shared views of how to bring this about is one of the most important [developments] that I have ever witnessed in travel retail. It’s the first time that we have been able to share views about how we create a sustainable business especially during the worst case scenarios. This is one of the most important lessons that we have learned [together]. “There is obviously a lot of bad


news to digest right now, the most critical one being the low number of passengers, but I think and hope as soon as the customers start travelling again and they feel that the situation is gradually normalising, the passengers will come back. This is a fact, not a guess.” «


OCTOBER 2020


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